The company's decision comes when there has been a dip in intake due to tepid demand, increasing automation, reports Debashis Mohapatra.
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IT companies have, in recent times, re-invested gains arising from a weaker rupee.
The combined profit before tax of 748 companies, which have declared their results for Q1FY21, is down 46 per cent YoY. Their net sales went down by a quarter as the Covid-19 lockdown led to a sharp fall in economic activity.
The BSE Mid-Cap index was currently down 1.25%
Ajit Mishra, vice president, research, Religare Broking, answers your stockmarket queries.
Shares of Tata Consultancy Services on Wednesday plunged almost 4 per cent, wiping out about Rs 16,000 crore (Rs 160 billion) in investor wealth, after the IT major indicated to analysts that weak India business and lower working days could drag down March quarter growth rate.
These firms owe Rs 13 trillion to lenders and account for 55% of all non-financial corporate debt.
Indian IT companies have been under pressure to return excess cash on their books to shareholders through generous dividends and buybacks
Business executives are finally dusting off their long-unused suitcases to resume travel, thanks to a good vaccination rate, a drop in fresh cases, and an easing of travel restrictions. It comes as a huge relief for the ravaged aviation, travel and hospitality sectors. "We are witnessing a 40 per cent recovery on pre-covid volumes from our business travellers, signalling the return of corporate confidence in air travel," said Indiver Rastogi, president & group head, Global Business Travel, Thomas Cook (India) & SOTC.
Professional services firm Ernst & Young bagged the contract from UIDAI to become consulting partner for the project.
Stock crashes 6.5%; top 5 firms lose Rs 33,883 crore in market cap
'At the heart of the strategic relationship between our countries are economic ties.'
75 companies can dole out Rs 1.1 trillion from the 'extra cash' to shareholders.
Tata Consultancy Services (TCS) has been ranked the third most-valued IT services brand globally, after Accenture and IBM, according to a report by Brand Finance. Four Indian IT services companies -- TCS, Infosys, HCL and Wipro -- secured spots in the top-10 global tally.
Now sole contender as L&T Infotech quits race
The pace of job generation has slowed as IT firms look at automation to do testing
Information technology majors Infosys, Wipro and HCL have posted strong results, but analysts are still skeptical on whether the domestic IT industry will be able to sail through the US slowdown, maintaining its profitability and margins. The results of the three firms were in line with market expectations. Analysts believe that the company was able to post a positive result mainly because it has been successful in moving its incremental business out of the US to Europe.
10 stocks which are most popular with brokerages right now and are expected to deliver maximum upside over the next 12 months.
For top IT services firms, revenue growth in FY15 was the slowest since the Lehman crisis
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Slowing growth, stronger rupee and higher local hiring to pull firms down this financial year
Ajit Mishra, vice president, Research, Religare Broking, answers your queries.
The local markets are expected to react to global triggers until the government announces the Union Budget.
Ajit Mishra, vice president, Research, Religare Broking, answers your queries.
Shares of IT companies were in focus with the Nifty IT and S&P BSE IT index gaining more than 2% in an otherwise lower market
With automation taking place at a much faster pace across industries especially in the tech space, domestic software firms that employee over 16 million are set to slash headcounts by a massive 3 million by 2022, which will help them save a whopping $100 billion mostly in salaries annually, says a report. The domestic IT sector employs around 16 million, of them around 9 million are employed in low-skilled services and BPO roles, according to Nasscom. Of these 9 million low-skilled services and BPO roles, 30 per cent or around 3 million will be lost by 2022, principally driven by the impact of robot process automation or RPA. Roughly 0.7 million roles are expected to be replaced by RPA alone and the rest due to other technological upgrades and upskilling by the domestic IT players, while it the RPA will have the worst impact in the US with a loss of almost 1 million jobs, according to a Bank of America report on Wednesday.
The Netherlands has emerged as India's fifth-largest export destination in 2021-22 (FY22), jumping from its 10th position a year ago. Exports to the fifth-largest economy in the European Union (EU) bolted 94 per cent to $12.5 billion in the financial year ended March 31. In FY22, the Netherlands surpassed Hong Kong, Singapore, the UK, Germany, and Nepal to become India's largest export destination in the EU. Germany, which was earlier India's top European export destination (eighth position), has now dropped two ranks to 10th place.
At 15.05 PM, the 30-share Sensex was up 281 points at 28,238 and the 50-share Nifty gained 86 points at 8,577
Accenture's Q1 FY22 results have sent a wave of cheer among analysts, as the company raised its revenue guidance and said it expects double-digit growth in outsourcing, up from single digit to low double-digit growth expected earlier. Accenture's financial year ends on August 31. The company raised its revenue outlook for FY22 to 19-22 per cent in local currency, up from 12-15 per cent earlier.
IT services firms would no longer focus on large volume hiring from campuses like they did at least two to three years ago, as demands of clients are changing.
Ajit Mishra, vice president, Research, Religare Broking, answers your queries.
Infosys, HCL might fare marginally better than TCS.
India's cash-rich promoters are not the same as the wealthiest. For example, Mukesh Ambani is the richest Indian based on his stake in Reliance Industries, followed by Premji, the Adani family of the Adani group, and Radhakishan Damani of Avenue Supermarts.
The upsurge in capital market seems to have bypassed the information technology sector where the top 25 companies including Wipro, Infosys, HCL and NIIT, lost almost Rs 66,500 crore in market value since March 8, 2001.
In the broader market, BSE Midcap and BSE Smallcap indices mirrored the gains in headline indices and rose 1% and 0.9% respectively.
Stocks below a certain size in terms of market capitalisation don't attract much institutional interest
Ajit Mishra, vice president, Research, Religare Broking, answers your queries.
Ajit Mishra, vice president, Research, Religare Broking, answers your queries.
In a circular dated May 20, Sebi had directed the listed companies to evaluate the impact of Covid-19 on their capital and financial resources, profitability, liquidity position, assets, and ability to service debt. Instead, companies have spoken about the number of plants, warehouses and distribution centres that have resumed operations; work-from-home and safety measures undertaken for employees; and the labour shortage they are facing.
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